Wall Street Keeps Hiking Its Price Targets on This AI Powerhouse

Alex Sirois

Wed, July 1, 2026 astatine 12:36 PM CDT 4 min read

Quick Read

• AMD's Data Center conception surged 57% YoY to $5.8B successful Q1, pushing full gross to $10.3B arsenic maturation accelerates.

• OpenAI and Meta each committed 6 gigawatts of AMD GPU deployments, with Gartner naming AMD the apical endeavor AI server CPU provider.

• Lisa Su doubled AMD's 2030 server CPU addressable marketplace forecast to $120B arsenic Q1 nett income surged 95% YoY, eroding the valuation concern.

• Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and AMD didn't marque the cut. Grab the names FREE today.

I support hitting the bargain fastener connected Advanced Micro Devices (NASDAQ:AMD) due to the fact that each 4th Lisa Su gives maine a caller crushed to bash it again. This is simply a presumption I americium compounding into, due to the fact that what she is gathering wrong that information halfway conception is the benignant of structural displacement that lone shows up successful a vocation erstwhile oregon twice.

The condemnation starts with what AMD really sells now. Server CPUs and AI accelerators going into the largest computing buildout I person ever watched arsenic an investor. In Q1 2026, the Data Center conception did $5.775 cardinal successful revenue, up 57% twelvemonth implicit year, and it is present the superior motor of the full company. Total gross deed $10.253 billion, up 37.85% YoY, and Su guided Q2 to astir $11.2 billion, which implies astir 46% YoY growth. Growth is accelerating.

Three reasons the bargain fastener stays progressive

First, the currency instrumentality has turned on. Free currency travel successful Q1 came successful astatine $2.566 billion, up 252.96% YoY. Full twelvemonth 2025 escaped currency travel reached $5.519 billion, up 129.48%, and AMD repurchased $1.316 cardinal of banal portion doing it. Non-GAAP gross borderline sits astatine 55%, with Q2 guided to astir 56%. That is the operating leverage I was waiting for.

Act now: the expert who called NVIDIA successful 2010 conscionable named his apical 10 AI stocks — and AMD didn't marque the cut. Grab the names FREE today.

Second, the lawsuit database present reads similar a who's who of the AI buildout. OpenAI selected AMD arsenic a halfway preferred spouse for 6 gigawatts of GPU deployment. Meta committed to deploy up to 6 gigawatts of AMD Instinct GPUs and is the pb lawsuit connected the 6th Gen EPYC Venice/Verano CPUs. Oracle is lasting up a nationalist AI supercluster with Helios and 50,000 GPUs successful Q3 2026. AWS, Google Cloud, Microsoft Azure and Tencent are expanding 5th Gen EPYC instances. Gartner conscionable named AMD "The Company to Beat for Enterprise AI Server CPUs."

Third, the equilibrium expanse lets Su play offense. Debt-to-equity sits astatine 0.071, involvement sum astatine 28.2x, and the institution runs a nett currency position. Shareholders' equity is $64.462 billion. There is country to invest, acquire, and bargain backmost banal each astatine once.